ptr120
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Post by ptr120 on Jun 12, 2018 13:28:15 GMT
Looking forward to seeing the details but it is a shame that it is a repeat borrower.
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andy1
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Post by andy1 on Jun 12, 2018 13:32:55 GMT
That'll make 4 in less than 4 months. It sort of feels like a lot of transitional chaos to manage all at the same time. How many is too many?
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macq
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Post by macq on Jun 12, 2018 13:37:06 GMT
while there is no logical or guaranteed reason to believe a repeat borrower is any less safe then a new & unknown borrower it would be nice to see a new face which would suggest a growth in new directions(but i guess Abl will be happy with the business growing this way)
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victors
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Post by victors on Jun 12, 2018 13:55:26 GMT
In the previous loan details it did say they were going to refinance another one, the R*** in Pickering.
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andy1
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Post by andy1 on Jun 12, 2018 13:56:46 GMT
while there is no logical or guaranteed reason to believe a repeat borrower is any less safe then a new & unknown borrower it would be nice to see a new face which would suggest a growth in new directions(but i guess Abl will be happy with the business growing this way) I think repeat borrowing in this instance does increase risk, not necessarily compared to a new borrower but compared to the previous situation. The ability to service these loans relies on the refurbishments happening on time and on budget and the businesses then trading successfully and in line with the profit projections. That's hard enough with 1 pub but trying to do 5+ simultaneously is much harder and therefore much more likely to fail. Ah but what about the security I hear you say. Well the valuations are based on the pubs being refurbished and trading in line with expectations. If that's not happening then the valuations won't stack up either. It's enough to make me a bit more nervous than I was anyway (I am in both the earlier loans).
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blender
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Post by blender on Jun 12, 2018 17:14:40 GMT
while there is no logical or guaranteed reason to believe a repeat borrower is any less safe then a new & unknown borrower it would be nice to see a new face which would suggest a growth in new directions(but i guess Abl will be happy with the business growing this way) I think repeat borrowing in this instance does increase risk, not necessarily compared to a new borrower but compared to the previous situation. The ability to service these loans relies on the refurbishments happening on time and on budget and the businesses then trading successfully and in line with the profit projections. That's hard enough with 1 pub but trying to do 5+ simultaneously is much harder and therefore much more likely to fail. Ah but what about the security I hear you say. Well the valuations are based on the pubs being refurbished and trading in line with expectations. If that's not happening then the valuations won't stack up either. It's enough to make me a bit more nervous than I was anyway (I am in both the earlier loans). Yes, I agree. I am in the first one. I recall the previous valuations of security were projections based on anticipated trade. A pub is a business valued on its turnover (VAT returns are useful). The intention was to fatten these pubs up for sale and it would be good to see some progress on that, with the interest being paid from the takings rather than possibly from new borrowing. Perhaps a quantity of comforting info will come with the proposal. Nothing wrong in principle with funding this growth.
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nw99
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Post by nw99 on Jun 12, 2018 18:29:25 GMT
Great news new loan bring it on
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Post by fatbritabroad on Jun 12, 2018 20:35:26 GMT
Hmm I'm in both the others up to my limit pretty much (trying to avoid putting more than my interest now in each borrower as the concentration makes me uncomfortable)
Hopefully more loans to come
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nw99
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Post by nw99 on Jun 13, 2018 6:23:40 GMT
Same but always worth investing
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Post by stevem on Jun 13, 2018 8:00:25 GMT
Looking at Google reviews the A***** Hotel refurbishment seems to have been well received, sounds like they do achieve what they set out to do.
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macq
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Post by macq on Jun 13, 2018 8:18:07 GMT
my problem is not with the individual loans or the regular borrowers more the perception that the company is adding any new business for growth and does not have to rely on that repeat business which one day may not come back - but as long as that model is working it's all good.
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Post by dan1 on Jun 13, 2018 8:29:58 GMT
/Mod hat on
Just a gentle reminder, please do not name borrowers or their assets (pubs in this case). I've had to redact 3 posts in this short thread already so far.
Thanks
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blender
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Post by blender on Jun 13, 2018 9:05:18 GMT
my problem is not with the individual loans or the regular borrowers more the perception that the company is adding any new business for growth and does not have to rely on that repeat business which one day may not come back - but as long as that model is working it's all good. If I can read 'the company' as 'the platform' then yes, agreed. However, I guess the loss of the SPL borrower (nameless) made that problem painfully obvious to Ablrate, and the wider p2p community.
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Post by fatbritabroad on Jun 13, 2018 14:22:05 GMT
/Mod hat on Just a gentle reminder, please do not name borrowers or their assets (pubs in this case). I've had to redact 3 posts in this short thread already so far. Thanks For once it wasn't me! (i dont think)
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ptr120
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Post by ptr120 on Jun 14, 2018 14:55:23 GMT
The borrowing proposal is now available to view. ablrate I wonder if you could let us know the purchase price of the property, how much will be spent on the redeeming the lease, and how much will be spent on the refurbishments? I see that the valuation reports have some special assumptions which I'm generally not in favour of as they tend to inflate the value, and the special assumptions may not come to pass (in theory, the loan could default before any refurbishment has been undertaken). It would be helpful if the valuer could comment on the security value without the special assumptions - would that be possible? How are the letting rooms rented out? By the night - hotel style - or weekly / monthly lets to contractors and the like? |
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